Entry of purchase non itc availed

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2017 Dear experts
i had made sale invoice with 5% vat say
100 goods value
5 vat
total bill amount 105

pls tell me what will be the accounting entry as we not eligible to claim ITC

regds
Sumit

Mithun Agarwal

Mithun Agarwal (Expert)
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09 January 2017 If, you are not want to avail ITC then you will prepare Retail Invoice. AND, in the books of account you will show or pass entry in unregistered dealer.

Cash/party name A/c.......Dr.
To vat output A/c
To Sales A/c

CA Suresh Jain

CA Suresh Jain (Expert)
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09 January 2017 VAT Output Account to be opened under Liabilities( Govt. Rates, Taxes and Statutory Payments)

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2017 I am so sorry.. mistakenly i put sales instead off purchase. Actually my query
Was pertain to purchase as follow..
Goods value 100
5% Vat 5
Total bill amount 105
since it was sales invoice hence not eligible for ITC. Pls clarify in this scenario what will be accounting entry of this purchase

CA Suresh Jain

CA Suresh Jain (Expert)
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10 January 2017 Purchase Account Dr. 100
Input VAT a/c. Dr. ( in current assets) Dr. 5
To Party account Rs. 105

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